EOS Price Surges Over 10% After Voting System Announcement For Its $35 Million Savings Account

Omar Faridi
  • 29 Aug 2018
  • /
  • In #EOS
  • A voting system will reportedly be implemented so that EOS community members can collectively decide how to spend the funds from the cryptocurrency platform's $35 million savings account.
  • Following this announcement, the price of the EOS token surged by over 10%.

EOS.IO, a blockchain-based platform that aims to facilitate the horizontal and vertical scaling of decentralized applications (DApps), has been criticized for its controversial governance model in which just 21 block producers have most of the control over a multi-billion dollar digital asset network. However, EOS.IO’s native token, EOS, has surged by over 10% in the past 24 hours, according to data from CryptoCompare.

The cryptocurrency’s price shot up after it was announced on August 27th that its developers would be “building a voting system to help with the decision making” for the platform’s $35 million savings account.

No Plans Regarding EOS's Savings Acccount

Block.one, a privately held company focusing on “high performance” blockchain technologies, created the EOS.IO savings account when it began developing the EOS platform in May of 2017. When the savings account was created, EOS’s developers did not formulate any plans regarding how its funds would be spent.

Tp decide where the funds should be invested (or used), the EOS team will be implementing a voting system that will allow the crypto’s community to make decisions regarding how the funds are to be managed. Most of the EOS community members are reportedly supportive of the new voting system, however, it may take some time before they collectively decide how to spend the funds.

Crypto Market Showing Recovery Signs

At press time, EOS tokens are up by over 10% and currently trading at $5.93, with a market capitalization of over $5.3 billion. As reported by CryptoGlobe, Bitcoin (BTC) price surged past $7,000 on August 28th and is currently trading at $7,082.91. This is a significant increase in the flagship cryptocurrency’s price, considering it had dropped below $6,000 around mid-August.

Moreover, it seems that cryptocurrency prices, as a whole, are beginning to recover with NANO, the “global currency”, surging by as much as 84% to $3.27 (per token), before correcting to around $3.07. South Korean firm ICON, which aims to develop communication channels between multiple blockchains (blockchain interoperability), also saw its ICX token surge by over 20% on August 27th to over $.96 but its price has also now corrected to $.90 at the time of writing.

Short-Term Price Movements "Don't Tell Us Much"

According to recent comments from Litecoin (LTC) founder Charlie Lee, “it’s hard to predict [cryptocurrency] prices” and it’s also difficult to determine just how long a bear market will last, or how long it will take for digital currency prices to recover.

Despite the declining market capitalization of the cryptocurrency market, Lee noted that bitcoin and litecoin adoption had actually increased. Moreover, the MIT graduate said that while short-term cryptocurrency price movements “don’t really tell us much...in the future, the price will reflect the success of the [crypto]currencies]."

Block.One Won’t Launch Its Voice Social Network on Eos’ Public Blockchain

Francisco Memoria

Block.one, the firm that developed the EOS.IO software, won’t be using the public EOC mainnet to launch its cryptocurrency-powered social media platform Voice.

According to the company’s frequently asked questions page, Voice will instead be using a “purpose-made EOSIO blockchain.” In time, the page adds, it hopes Voice will “leverage the EOS Public Blockchain.”

It reads:

While Voice is in beta and a highly iterative state, it will be run on a purpose-made EOSIO blockchain. In time, we would like Voice to leverage the EOS Public Blockchain, and potentially others that can meet the performance and governance demands of Voice.

CoinDesk points out this counters a statement included in the original press announcement of Voice that made it clear “Block.one will launch the Voice platform on the EOS Public Blockchain.” At the time, Block.one even reserved 3.3 million EOS of RAM, which most believed was to power the social media platform, although the firm never confirmed it.

Voice, as CryptoGlobe reported, is a cryptocurrency-powered social media platform Block.one plans to launch on February 14 that’s set to challenge social media giant Facebook by not leveraging its users’ information for its own gain.

While the motives behind Block.one’s change are unclear, some are speculating that problems with the EOS network were behind the move, as they could eventually slow down Voice’s operations and hinder its growth. As reported, last year the EIDOS airdrop rewarded users for conducting as many transactions as possible, and brought the blockchain to a “congestion mode.”

Block.one itself built the EOSIO software, which was then used by various organizations to launch the EOS network. Other organizations have used the software to deploy other networks, one of which is Telos.

Speaking to CoinDesk Douglas Horn, who runs Telos, revealed he’s optimistic Voice could at some point partially using the Telos blockchain for Voice, as the firm claimed its allocation on the network last year, suggesting it may be interested in running applications there.

Voice, it’s worth noting, is set to reward its users who engage on the platform with Voice Tokens. Engagement, according to the firm, is “being you, and expressing your voice.” Users will be able to cash in on Voice Tokens in order to draw greater attention to their content, thereby creating a network where “what’s good for the platform is also good for you.”

Featured Image Credit: Photo via Pixabay.com.